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Damages
for Breaches of Competition Law
Those who have suffered any loss as a result of a cartel
are able to claim damages. Cartels often form in order
to artificially raise the price of goods above market
value.
Purchasers are able to reclaim this additional amount
(above the market value price) from the offender as damages.
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Although such damages or actions are relatively
common in the United States, the European Commission’s
recent report into this area discovered that claims of
this nature are rare in the UK and Europe.
Competition law is designed to protect consumers from
the effects of anti-competitive agreements and practices
such as cartels and abuses of dominant positions. The
ability to claim back any damages suffered, as a result
of inflated prices or illicit practices, is fundamental
to the enforcement of competition law.
The European Commission has outlined this as an area to
focus, in order to ensure that those suffering as a result
of anti-competitive behaviour are adequately compensated.
The Member State competition authorities are also putting
emphasis on private enforcement of the competition rules.
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Why the UK? |
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The United Kingdom offers an advantageous
forum in order to bring a claim for damages, both at a
UK level and the European level for breaches of UK and
EU competition law. UK rules on disclosure and damages
allow for greater chances for a successful claim to be
made. The UK is also the only European jurisdiction that
has a dedicated and specialist tribunal: the Competition
Appeals Tribunal – which consists of judges, lawyers,
economists and financiers.
The case of Provini has also demonstrated that the UK
forum is able, competent and willing to accept claims
for damages based on European breaches, even if the damages
were not suffered within the UK, but were as a result
of anti-competitive practices that had an effect within
the EU and UK, and at least one of the parties is based
in the UK. |
Why Charles Russell? |
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| Charles Russell, with its experience in
the Crehan case (one of the first such damages
actions to go through the courts), and all related cases,
is well positioned to be able to offer you expert advice
in this growing area. |
Know How |
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"How About...Mediating Competition Cases?”
Article by Michael Cover and Emanuela Lecchi of Charles
Russell LLP
(This article first appeared in the December 2005 issue
of the Newsletter of the Mediation Committee of the
Legal Practice Division of the International Bar Association
(Vol 1, No 3), and is reproduced by kind permission
of the International Bar Association, London, UK)
>>more>>
European Commission (DG Competition) - Private enforcement
page with links and information
>>more>>
EU study on the conditions of claims for damages in
case of infringement of EC competition rules
>>more>>
Speech by European Competition Commissioner Neelie
Kroes on Private Enforcement of Competition Law
>>more>>
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Shareholders information |
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| Shareholders and consumers are those likely
to have suffered most from the adverse effects of a cartel.
Companies purchasing over-priced goods from a cartelised
industry will have lower profits. This will effect trade,
sales, profits and hence dividends and share value will
be dramatically effected. Companies that have suffered
a loss as a result of breaches of competition law may
be reluctant to initiate proceedings. Nevertheless Directors
are under a fiduciary duty in relation to their positions
in the company. Feel free to contact us to discover what
to do if you think that any of your investments have been
damaged as a result of Competition Law breaches. |
Alleged Cartels
Methacrylates >>more>>
Hydrogen Peroxide >>more>>
Parcel Tankers >>more>>
Industrial Bags Cartel >>more>>
Airline Cargo >>more>>
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